What do customer centric companies do? Create Advocates for Life.

corso281In my travels in recent weeks I have experienced two examples of how a customer-centric attitude and behavior produce memorable customer experiences. Both of these were in hotels in different countries.

In Rome my wife and I stayed at Hotel Corso 281. We planned to go south for a few days by train and wanted to leave a large case at the hotel and pick it up again on our way from the Amalfi coast via Rome to Venice. Even though there would only be a 45 minute time between our change of trains in Rome, Delia, the front office manager assured me that they would send a taxi with my bag to the station as soon as my train arrived in Rome. So we took the chance. When I nervously called the hotel on the morning of our journey and spoke to the hotel front desk a different person was fully aware of my situation. As we pulled into Rome station I called again and another front desk person was fully aware and organized a taxi to send the bag. When the taxi arrived at the station it had a large sign with my name in the side window and I gratefully took my bag. Soon after I received a call from Delia to tell me the taxi driver reported to her that the bag had been delivered. We made the train connection all because of a display of team collaboration embedded in the belief that the customer’s needs must be met. When next in Rome we are going back to stay at Corso 281.

In Dubai I checked in to the Rihab Rotana hotel after a 7 hour flight from London. The front office manager gave me his card and also the card of the other front office manager who was off duty. He assured me to call them any time if there was a problem or something they could do. This gentleman, Mazen, was gracious, attentive and carefully explained all hotel services. This manner of care could be seen from all staff in the hotel – from housekeeping to concierge to the gym and pool deck.. Soon after checking into my room a bowl of fruit was delivered. Each day in my week long stay I was greeted by the smile of Daryl, a young lady in the restaurant who seemed to be there for all seven days of my stay. She told me that their team of five often had to work long hours and 7 days because when the hotel was very busy they had to make sure all guests received a great experience. Sometimes at the end of the day even though she had already been there 12 hours her greeting and smile never diminished. I will go back and stay at Rotana in Dubai.

While these things are small for service people with the right attitude and attention to customer needs, they are huge for the customer.

Bottom line – I am an advocate of both these hotels, they stick in my mind, I will go back and I will recommend anyone that asks to try them as well.

Do you attract the right talent to your organization? People that focus on the reason their job exists? Does the leadership of your organization focus its attention on delivering a great experience?

You can learn more in our book the Customer Culture Imperative

Trump – the ultimate salesman but now comes the true test, will he deliver?

 

trump

Love him or loath him, one thing seems certain. Donald Trump understood the perceived needs of the middle-American “working class” and their real needs for a bigger share of America’s wealth. In business we refer to them as disenfranchised customers. In this case it was a huge proportion of the electorate that felt abandoned and had lost hope of achieving “the American Dream”.

The decisive power of a customer centric sales approach is on show here. He had the odds stacked against him – the media, the Republican party leaders, less resources than his competitor, a perceived lack of authenticity, a flawed character on show for all to see, a dubious business track record and inconsistency in his views. Any independent marketing observer would say the Trump brand was tarnished. Yet he prevailed.

Why? He listened to Americans, understood their anger and concerns and revived their aspirations. He understood how to communicate to them in a way they could understand and he effectively used fear as a motivator for action – in this case bringing them to the polls to vote for him. He used the old maxim – “the fear of loss is greater than the desire for gain”. It demonstrates that if you can tap into real needs and create an emotional connection that demands action you can create a following and eventually loyalty irrespective of flaws or weaknesses in your product. Such is the power of a customer-centric mindset. We might say customer centricity “trumps” strategy and superior resources.

Donald Trump has done the first bit of being customer-centric – creating perceived value in the minds of enough Americans to deliver him the presidency. Now he has to deliver the promise.

How he does that will require strong customer-centric leadership – ongoing insight and foresight and a team that has the mindset, capabilities and strategy with an alignment with the external environment that delivers value to middle-Americans. He will need to be consistent in his communication, be prepared to act on feedback that may differ from his own views and implement policies that will deliver on his promise. He will need to do even more than that – demonstrate his authenticity as a leader who really cares more for the American people than himself and demonstrate a character that commands respect and even admiration.

If he cannot do that he will be a one-term president.

Many senior leaders are like Donald Trump. They talk the talk and communicate great promise to their employees and their customers. But a majority of them do not display customer-centric leadership, do not walk the walk and don’t demonstrate they are in it for the long term value for delivery of value to their customers, employees and community before rewarding themselves. Those leaders are transitory, do not leave a legacy and often create chaos for all around them.

If you want to know more about customer-centric leadership contact MarketCulture and read The Customer Culture Imperative.

Customer Centric Leadership in Action – A lesson from Elon Musk

tesla_charging_station

One of the central tenets of being a customer centric leader is listening to customer feedback and responding with action.

There is no better recent example than Elon Musk’s response to a customer complaining about the Tesla charging stations being used simply as car spaces.

The Tesla customer complaining happens to be Loic Le Meur, a fellow entrepreneur and major tech influencer, with 130k followers on twitter. You could argue that probably holds more weight than just your average customer but clearly the issue was one bubbling up and on Elon’s mind.

Here is the interchange from the two on twitter below:

elon_musk_twitter_response

Loic’s tweet was responded to within 20 minutes and within 7 days the press announced “Tesla to begin charging idle fees to those remaining on the charger beyond a full charge”

As the team at OfficeChai reported:

“Tesla was going to charge $0.40 for every minute a fully charged Tesla would stand at its parking stations after a five minute grace period. This simple change would ensure that people wouldn’t leave their cars at parking stations, preventing others from using them.

And what’s incredible is the pace at which the product change was implemented. Tesla might still call itself a startup, but it hardly is one – it has over 30,000 employees, and large engineering teams. To have a product feature conceptualized, implemented and shipped in a week is nothing short of miraculous.”

Now this might not be the perfect solution but Tesla will listen to customers and refine further as needed.

This is what customer centric leadership looks like in action, in this case led from the top. Elon’s expectation is that everyone in Tesla is listening to customers and responding to continually refine and improve the experience and value being offered.

Are you are customer centric leader? Find out more in our book, the Customer Culture Imperative

 

How a Customer Centric Culture can save lives

virgin-trains_driver

The team at MarketCulture recently ran a one day leadership workshop in Sydney, as is often the case we get to hear some incredible stories of the power of customer thinking.

One that really stood out was the story of a driver for Virgin Trains.

Virgin Trains is a great story of a business that is always trying to improve the customer experience, Richard Branson is well known for saying “there is always another way to delight a customer.”

Many people would think why would you include train drivers in a program designed to improve the customer experience? They just need to drive the train, they are hidden away at the front with little interaction with actual customers.

Virgin did not believe this, their philosophy was that everyone matters when it comes to delivering a great customer experience. As a result the train drivers were included in workshops designed to help each employee think about their role in delivering great experiences.

A week or two after one of the sessions, a veteran train driver was taking the normal route he had taken for many years and as he rounded the bend on a bridge he noticed a slight bump on the tracks. It was not particularly unusual, small bits of debris can often end up on the tracks. However this time, with the recent customer thinking training on his mind, it made him think more deeply about the bump. More specifically he thought about the passengers on the train and his responsibility for keeping them safe.

He wondered whether passengers had noticed the bump? At the next stop he decided to radio the maintenance crews and report it. In the past it was not something he would normally do as it would mean an investigation of something that was in his 30+ years experience probably nothing.

He continued to the end of his journey for the day. As he pulled up to his last stop his shift manager was there waiting.

“That bump you radioed through”… the train driver winced thinking he wasted a bunch of people’s time… the Shift manager continued “our engineers were just out on that part of the track, it seems a strut supporting the bridge has failed. If we kept running trains over that section we would have had a derailment and hundreds of people could have died. I am so glad you noticed it, you have helped us all avoid a catastrophe. Even if it was nothing, I am glad you reported it, customer safety really is our number 1 priority.” The train driver was relieved, not only had he averted disaster but he had been empowered to do the right thing for customers even if it had consequences for the train’s operations.

The driver was later awarded outstanding employee of the year and celebrated at the annual Virgin Conference in the UK.

This is a powerful story about how customer thinking can help people connect their work to the bigger picture and their responsibilities in creating a great customer experience.

For more stories on Virgin Trains and other great customer centric companies you can check out our book, The Customer Culture Imperative

 

What is the kryptonite for disruptors?

Established businesses everywhere are under attack. The headlines are full of stories of business disruption. Entrepreneurs everywhere are building companies to unseat the entrenched firms.

While many think the answer is to invest in more technology, lobby government or follow their competitors actually the answer is right in front of them.

Our team in Sydney recently had the chance to sit down with Luke Jecks, the Global CEO of Naked Wines for his perspective. Listen to Luke talk about what he describes as the Kryptonite for disruptors, its a great lesson for anyone in business today:

So what’s the Kryptonite for disruptors? A Customer Culture or as Luke puts it:

“Love your customers”

If you spend time understanding and acting on your customers needs you will create loyalty that will keep you as immune as you can be to disruption.

So how did Naked Wines disrupt the wine industry?

Before Luke setup Naked Wines four years ago he was looking for an industry where customers felt disenfranchised. He found it in the Australian wine industry – a market dominated by two large retail chains owned by Coles and Woolworths that between them shared almost 70% of wine sales nationally. Not only did he find wine lovers who felt little connection with the vast array of brands but also boutique vineyards that were being squeezed out of the market by ever narrowing margins and an inability to finance the next vintage.

Luke knew that if he could create a personal connection between wine growers and consumers and a financial model that could provide more stability and certainty for wine growers he could build a new business.

He realized that he needed wine consumers as repeat customers and he came up with the idea of “angels’ – that is consumers as angel investors who would pay $40 per month and build up a credit in their account to be used to buy the boutique wines of their choice.

Four years after launch Naked Wines in Australia has more than 50,000 sustained angels, more than 35 boutique winery suppliers with an online communication and ordering system that connects them.

Annual Australian revenue of $30 million and more than $200 million globally is testament to the fact that the whole Naked Wines team have a culture that enables them to “love” their customers.

Isn’t it time to create a customerculture in your business and build up your disruptor defenses?

If you are interested in creating this type of culture in your organization why not attend one of our MRI Accreditation Workshops held all around the world!

 

How customer insight uncovers growth opportunities – Lessons from Nestle Japan

cappucino

Nestle’s customer insight creates a new market in Japan

Traditionally Nescafe was bought in grocery stores and consumed at home. As Nestle Japan searched for new ways to expand its coffee business it found that the economic downturn led to Japanese companies ceasing to supply coffee on the job for their employees. There are about 6 million offices in Japan, most having less than 20 workers and few coffee suppliers were selling directly to offices.

Nestle Japan developed the concept of the Nescafe Ambassador – an office employee with a passion for coffee, interested in collaborating directly with Nestle on behalf of their workplace and acting as an “in-office barista”. The company supplied an in-office Nescafe Barista soluble coffee machine and the Ambassadors ordered the coffee from Nestle, collected money from their co-workers for coffee consumed and forwarded payment.

This innovation came from the insight that Japanese employees liked to have the convenience of having coffee in the workplace. But more than that it was an opportunity to talk with their colleagues, collaborate and catch up with what is going on – it rebuilt their social interaction and a sense of community at work which had been lost in many office environments. Nestle was able to capitalize on this unique understanding of what was happening in the Japanese office environments

Nestle is also looking for new ways to meet the needs of Ambassadors to enhance the atmosphere at their workplaces and facilitate communication between their colleagues.

customer insight

This new business model based on a customer-centric approach to business has been very successful for Nestle japan. The program was rolled out in November 2012 and by early 2015 there were 170,000 Nescafe Ambassadors. Their goal is to establish 500,000 Nescafe Ambassador cafes at the workplace as well as 6,000Nescafe Satellite cafes and Café-in-shops over the next five years.

Source: Kotler Impact, “Mind your Marketing”, Volume 1, October 2015, Business Model Innovation: The Nescafe Ambassador Program, pages 120-121

How one person can make a difference role modeling customer centricity

tarpys

Tarpy’s Roadhouse just outside of Monterey, California is renowned for its good food, friendly hospitality and fast service. One person, Niranjan (“Nick”) Subedi, a native of Nepal, shines out as a role model in serving guests at the restaurant since 2000. A phrase known to every Nepali translates to “guests equal god” and offering all you have to a guest is considered a moral duty. Nick remembers every guest and their preferences even when they have not been back to Tarpy’s in a long time. Clint Eastwood, who lives in the area, is a big fan and he like many guests requests to be seated in the area where “Nick” is serving. Nick’s belief is that service is a duty and a pleasure and he shows this in his wide grin and attention to customers’ needs. But more than that he says: “I try to bring the human element to dining, to show that I love the guests”. He lives nearby with his wife in a house he owns “ because of my customers. I owe everything to them,” he said.

“Guests equal god”

It only takes one person like “Nick” Subedi to act as a powerful role model in a business reflecting strong customer-centric behaviors to lead others to do the same. If enough people in your organization follow this example you will have a strong customer culture – and a sustainable thriving business.